RUSAL seeks Kremlin aid four bauxite and alumina plants face mothballing risk

Leading Russian aluminium producer RUSAL is considering mothballing four alumina and bauxite facilities as the company faces combined annual losses of around USD 800 million. The move hints at the growing pressure on the economics of domestic raw-material production. RUSAL is also estimating losses of approximately USD 400 per tonne of aluminium from processing at the affected facilities.

Four facilities face an uncertain future

The facilities under consideration are the Pikalevo alumina refinery, the North Urals bauxite mine, the Bogoslovsky alumina refinery, and the Uralsky alumina refinery. RUSAL has informed Prime Minister Mikhail Mishustin about the possibility of mothballing the four sites.

The Pikalevo, Bogoslovsky and Uralsky refineries produced 2.1 million tonnes of alumina in 2025, representing about 30.7 per cent of RUSAL’s total alumina output.

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RUSAL notes that buying raw materials from external markets could be more economical than continuing to operate the loss-making facilities. Ahmed Aliev, Senior Analyst at T-Investicii, expects the company could increase overseas raw-material purchases if the plants are fully shut down.

The potential mothballing could affect employment and the economic conditions of the regions where the facilities are located. RUSAL has therefore sought government support for the affected regions as well as financial assistance for modernisation.

The company has also pledged to minimise the social and economic consequences of any decision to mothball the plants.

RUSAL faces financial pressure

RUSAL’s revenue gained 22.6 per cent to USD 14.81 billion in 2025, but the company recorded a net loss of USD 455 million. In H1 2026, it reported a net profit of USD 419 million, compared with a loss of USD 87 million in H1 2025.

Despite the improvement, shareholders approved the decision of not paying dividends for 2025. RUSAL’s last dividend payment was for the first half of 2022.

Cost pressures are also affecting other Russian metals producers. In May, Severstal announced a hiring freeze and considered layoffs, while cutting its 2026 investment programme by 24 per cent.

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A decision hinging on federal support

The largest aluminium producer outside China, RUSAL accounted for about 5.3 per cent of global aluminium production and 4.7 per cent of alumina production in 2025. The company operates 11 alumina refineries across Russia, Ireland, Italy, Guinea and Jamaica, alongside stakes in operations in China, India and Australia.

As of now, the four Russian facilities remain under review rather than being confirmed for permanent closure. But with the plants generating substantial losses, unless Kremlin-backed support helps improve their economics, RUSAL may increasingly have to consider mothballing the four operations.

The eventual outcome is therefore likely to depend not only on aluminium and alumina economics but also on the extent of state support available to RUSAL. Unless the Kremlin intervenes with meaningful financial, logistical or regional support, the company may have to consider pausing operations of the four plants for the time being.

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